Brand development index
The Brand Development Index (BDI) is a metric used in marketing to determine how well a brand is performing in a particular market relative to its sales. It is calculated by comparing the percentage of a brand’s sales in a specific market to the percentage of the total population in that market. A high BDI indicates that a brand is doing well in that market, while a low BDI suggests that there is room for improvement.
For example, if a brand has 10% of its sales in a market where only 5% of the total population lives, the BDI would be 200 (10% / 5% = 200). This would indicate that the brand is performing well in that market compared to others.
On the other hand, if a brand has 5% of its sales in a market where 10% of the total population lives, the BDI would be 50 (5% / 10% = 50). This would suggest that the brand is not performing as well in that market and may need to adjust its marketing strategies.
Examples of BDI calculation:
- Brand A has 15% of its sales in a market where 20% of the total population lives. BDI = 75
- Brand B has 8% of its sales in a market where 5% of the total population lives. BDI = 160
By using the Brand Development Index, marketers can identify areas where their brand is performing well and areas where there is room for growth. This allows them to tailor their marketing strategies to maximize their brand’s potential in each market.
For more information on the Brand Development Index, you can visit Wikipedia.